HTC profits and stocks drop

<p>Stocks in HTC are at a seven-and-a-half year low.</p>

The share price of HTC has plunged to a new seven-and-a-half year low today (July 8th) after it revealed another set of negative financial results.

Profits at the mobile phone manufacturer were recently shown to be an 83 per cent drop second quarter from a year earlier and this caused stocks to fall by seven per cent.

Net profit for the April to June period stood at NT$1.25bn (£27 million), with the Taiwanese firm having launched a new top-end smartphone – the HTC One – in a bid to claw back market share from rivals such as the Apple iPhone and the Samsung Galaxy S4.

Taipei-based analyst Peter Liao of Nomura Securities noted other Asian brands are also becoming increasingly competitive with the likes of HTC.

"HTC may have new products in the third quarter, but competition from Apple and other Chinese brands is fierce," he told BBC News.

Morgan Stanley, in a note to investors, claimed the window of opportunity for HTC to push its new device is over, adding: "Failure to turn the 'best ever' HTC One into scale bodes ill for HTC's long-term outlook."

HTC stocks closed the session at 189.00, a fall of 14 points, or a drop of 6.9 per cent, on the start of the day.

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